Treasury Sanctions Individuals and Entities as Members of the Altaf Khanani Money Laundering Organization

WASHINGTON – Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated four individuals and nine entities associated with the Altaf Khanani Money Laundering Organization (Khanani MLO). The Khanani MLO was designated by OFAC on November 12, 2015 as a Transnational Criminal Organization (TCO) pursuant to Executive Order 13581 (“Blocking Property of Transnational Criminal Organizations”). The Khanani MLO engages in third-party money laundering by transferring funds to financial institutions on behalf of drug traffickers and TCOs worldwide.

“Treasury remains committed to combatting illicit money laundering networks around the world and today’s action is the result of close coordination with our partners in the United Arab Emirates,” said John E. Smith, Acting OFAC Director. “We will continue to use all of our tools to block the Khanani Money Laundering Organization’s attempts to gain access to the international financial system and hinder the organization’s ability to support criminal activity .”

As a result of today's action, any assets of these designated individuals or entities within the United States or in the possession or control of U.S. persons are blocked, and U.S. persons are prohibited from engaging in transactions with these designated individuals and entities.

Individuals Supporting the Khanani MLO

As part of today’s actions, OFAC designated Obaid Altaf Khanani (Obaid Khanani) and Hozaifa Javed Khanani (Hozaifa Khanani) for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, and having acted for or on behalf of, directly or indirectly, the Khanani MLO. OFAC also designated Muhammad Javed Khanani (Javed Khanani) and Atif Polani for having acted for or on behalf of, directly or indirectly, the Khanani MLO. Additionally, Obaid Khanani and Atif Polani were designated for acting for or on behalf of, directly or indirectly, Al Zarooni Exchange. Al Zarooni Exchange was designated on November 12, 2015 for its ties to the Khanani MLO.

Obaid Khanani, the son of Altaf Khanani, served as a senior manager at Al Zarooni Exchange, and holds a leadership role in the Khanani MLO, working with other money launderers following the designation of Al Zarooni Exchange.

Hozaifa Khanani, the nephew of Altaf Khanani, has been involved in real estate investments on behalf of the Khanani MLO.

Javed Khanani, the brother of Altaf Khanani, has been heavily involved in laundering criminal proceeds via money service businesses, including Al Zarooni Exchange, for or on behalf of the Khanani MLO. Javed Khanani has also been involved in the Khanani MLO’s operations in Pakistan.

Atif Polani played a pivotal role in managing Al Zarooni Exchange and moved funds on behalf of the Khanani MLO.

Entities Supporting the Khanani MLO

As part of today’s action, OFAC also designated Mazaka General Trading L.L.C., Jetlink Textiles Trading, Seven Sea Golden General Trading LLC, Aydah Trading LLC, and Wadi Al Afrah Trading LLC for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or service to or in support of, the Khanani MLO. General trading companies play an important role in the Khanani MLO, often acting as general payment intermediaries or money transmitters by sending funds to entities on behalf of the Khanani MLO.

Finally, OFAC designated Kay Zone General Trading LLC and Landtek Developers for being owned or controlled by Obaid Khanani and Kay Zone Builders & Developers and Unico Textiles for being owned or controlled by Hozaifa Khanani.

OFAC took today’s action in coordination with the Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Customs and Border Protection, National Targeting Center, the Australian Federal Police, and the Australian Criminal Intelligence Commission, as well as the Anti-Money Laundering Unit at Dubai Police General Headquarters and the Central Bank of the UAE. The U.S. Treasury Department commends the UAE for its partnership in identifying and addressing the risks posed to the UAE, its banking and financial institutions, and the international financial system, by these illicit actors.

Ads

﻿

About Us

At Compliance Alert we combine Governance, Risk, and Compliance expertise to deliver critical information to leading decision makers in the financial and risk, legal, tax and accounting, intellectual property and media markets, powered by the world’s most trusted news organization.